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    Question

    In the Keynesian consumption function C = a + bY, 'a'

    represents:
    A Marginal Propensity to Consume. Correct Answer Incorrect Answer
    B Autonomous consumption. Correct Answer Incorrect Answer
    C Induced consumption. Correct Answer Incorrect Answer
    D Disposable income. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The intercept 'a' is consumption when income is zero, financed by savings or borrowing. It's autonomous (independent of current income).

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